Financial performance of Panasonic

The company's fiscal year ends on March 31.

2021: Decrease in revenue by 11%, to 6.69 trillion yen, profit - by 27%, to 165.1 billion yen

Panasonic's revenue for fiscal year 2021 amounted to 6.69 trillion yen (about $63 billion at the exchange rate as of May 11, 2021 of the calendar year), which is the lowest value in 25 years. Compared to 2020, sales decreased by 11%.

In the household appliances division, Panasonic's annual revenue decreased by 4%, to 2.49 trillion yen. Sales in the areas of Life Solutions and Connected Solutions fell by 21% (up to 1.5 trillion and 818 billion yen, respectively). The turnover in the automotive technology business decreased not so much, but also significantly - by 10%, to 1.34 trillion yen. In the direction of industrial solutions, a 2 percent decline in revenue was registered, to 1.26 trillion yen.

Panasonic revenue turned out to be the smallest in 25 years

Panasonic's net profit in the 2021 reporting year amounted to 165.1 billion yen, which is 27% less than a year ago. The financial downturn in the company has been associated with the consequences of the coronavirus pandemic, COVID-19 which has reduced Panasonic product costs worldwide.

Amid the challenges faced by the Japanese electronics maker, it has begun stepping up cost-cutting efforts and reorganization measures to ensure profit growth. The company is counting on growing performance, despite a shortage of chips and the COVID-19 coronavirus pandemic.

According to the agency, the economic Reuters recovery that has begun after large-scale lockdowns spurs demand for equipment and components manufactured by Panasonic, including batteries for. electric cars The company aims to meet the growing demand for such batteries in key markets, such as USA and, China thanks to a ten-year partnership with, Tesla which finally began to make a profit.

Over the 12-month period by May 10, 2021, Panasonic's market capitalization grew by 57.3%, to 2.96 trillion yen.^[1]

2020: 6% revenue drop due to COVID-19

In fiscal 2020, Panasonic received revenue of 7.49 trillion yen ($69.8 billion), which is 6% less than sales a year ago. The company linked this decline to the effects of the COVID-19 pandemic, as well as changes in the product portfolio and declining investment in China.

The direction for the production of household appliances in the 2020 reporting year brought Panasonic revenue  of 2.59 trillion yen, which is 6% less than a year earlier. This decline was largely due to a decrease in sales of equipment used in smart home systems. At the same time, the company noted a surge in sales of air conditioners.

Financial performance of Panasonic

On the supply of automotive solutions, Panasonic earned 1.48 trillion yen in 2020, which is 3% less compared to the previous year. The company noted that the outbreak of coronavirus painfully hit the auto industry, and the expansion of battery production capacity did not make it possible to compensate for this negative factor.

The industrial solutions division showed a 10 percent decrease in turnover, to 1.28 trillion yen. Annual sales in Life Solutions and Connected Solutions fell by 6% and 8% to 1.91 trillion and 1.04 trillion yen, respectively.

Panasonic ended the 12-month reporting period closed on March 31, 2020, with a net profit of 225.7 billion yen ($2.1 billion). This is 21% less than a year earlier. According to the Japanese manufacturer, profit decreased due to restructuring costs.

One of the stages of this restructuring in 2020 was the phasing out of the production of LCD displays by 2021. The company tried to respond to the "tough competition and evolution" of the business, but came to the conclusion that further work in this market will be unprofitable, the Japanese vendor said in a statement.^[2]

2019: Insignificant revenue growth to 8 trillion yen

In fiscal year 2019, which ended on March 31, 2019, Panasonic's consolidated sales amounted to a little more than 8 trillion yen (about $72.51 billion at the exchange rate as of May 22, 2019), slightly increasing compared to the previous year.

In the Japanese market, Panasonic's annual revenue fell from 3.72 to 3.71 trillion, and abroad the corporation's turnover increased from 4.25 to 4.28 trillion yen.

Financial performance of Panasonic

In the Automotive & Industrial Systems division responsible for the production of automotive and industrial solutions, Panasonic sales at the end of 2019 turned out to be 2.98 trillion yen, an increase of 6% compared to 2018.

In the direction related to household appliances, the company received annual revenue of 2.75 trillion yen, which is 1% less than the result of the 2018 reporting year.

The Connected Solutions structure, which, among other things, oversees the release of mobile phones and digital cameras, ended fiscal year 2019 with a 2 percent increase in sales, which amounted to 1.12 trillion yen. In Eco Solutions (lighting and ventilation systems, renewable sources), revenue increased by 4% to 2.03 trillion yen.

Profit fell in all Panasonic divisions. Most of all - by 40% - it decreased in the automotive business and amounted to 56.4 billion yen.

Panasonic President Kazuhiro Tsuga noted that the profitability in the car battery market remains low, as investment in this sector has decreased over the previous three financial years.

In the 2019 financial year, profits in the areas of Eco Solutions and Appliances decreased by 20%. Connected Solutions experienced a 9 percent decline.

Panasonic's net profit in fiscal 2019 reached 302.7 billion yen, which is 20% higher than the profit a year ago.Panasonic 2019 Financial Report

2018: Revenue growth by 10% to 8 trillion yen

In fiscal year 2018, which ended on March 31, 2018, Panasonic's consolidated revenue reached 7.98 trillion yen, which is 9% more than a year earlier.

Panasonic's net profit jumped by 58%, amounting to 236 billion yen, despite rising costs, including for the purchase of materials. This rise was largely due to Connected Solutions, which is responsible, among other things, for laptop computers, smartphones and corporate communications systems. Revenue in the amount of 1.1 trillion yen was registered in this structure. This is 6% more compared to the fiscal year 2017. Profit more than doubled due to the Japanese manufacturer's emphasis on the most profitable products.

Financial performance of Panasonic

The strongest annual revenue growth among the divisions was shown by Automotive & Industrial Systems - by 16% to 2.8 trillion yen. This increase in Panasonic was associated with high demand for driver assistance systems and sales of industrial equipment in China. However the profit of division decreased by 2% to 91.4 billion yens because Tesla Motors detained the beginning of mass producer elektromobileymodel 3.

In the direction of household appliances, Panasonic recorded sales of 2.6 trillion yen in fiscal year 2018, which is 3% more than a year ago. The main drivers of this rise are the strong sale of home air conditioners in Europe and China, as well as washing machines in Asia. Profit increased by 6% to 104.4 billion yen due to business optimization and increased sales.

Revenue in Eco Solutions (solar panels, lighting, ventilation and air purification systems, electrification products) turned out to be 1.6 trillion yen, an increase of 5% year on year. Operating profit increased even more - by 13% to 72.5 billion yen.

Panasonic still generates most of its revenues abroad: in 2018, the Japanese corporation's revenue outside Japan amounted to 4.3 trillion yen, which is 16% more than the previous year. In Japan, Panasonic earned 3.7 trillion yen (+ 2^[3]

2017: Reduced profit by 10% to 149.5 billion yen

On May 11, 2017, Panasonic announced a decrease in net profit and revenue in the previous fiscal year, which ended for the company in March.

The annual profit of the Japanese company fell by almost 10% to 149.4 billion yen ($1.3 billion), and revenue decreased by 4% to 7.34 trillion yen (about $64 billion). Among the reasons for the regression in Panasonic are the slowdown in demand for solutions in the field of solar energy and the negative consequences due to the strengthening of the yen, reports Agence France Press.^[4]

Together with the report for the previous year, the Japanese vendor also presented a forecast for the current 12-month period, which will end in March 2018. Panasonic expects to improve results through a growing automotive component business and reduce restructuring costs, Nikkei reports.

Panasonic reported a decline in net profit and revenue in the fiscal year, which ended for the company in March 2017

According to Mitsushige Akino, an analyst at Ichiyoshi Investment Management, the production of automotive systems and components has become a stable driver of revenue growth for Panasonic.

The report says that Panasonic considered fiscal year 2017 as a period of "forming a reliable basis for further growth" and achieving the goals set by the company's management for fiscal year 2019, and actively invested in promising areas of its business.

In particular, as part of the reform of the direction of housing construction in April 2016, Panasonic Corporation and PanaHome introduced the unified Panasonic Reform brand. The Corporation announced its intention to acquire the assets of PanaHome as part of the tender offer, making it its 100% subsidiary.

Speaking at a conference on the results of the year, Panasonic President Kazuhiro Tsuga said that the company redirected resources to promising areas and took a confident course to increase revenues and revenues.

The Japanese manufacturer predicts annual net profit of 160 billion yen ($1.4 billion), which is 7% more than a year ago. Revenue should grow by 6.2%, to 7.8 trillion yen ($68.4 billion), expect Panasonic.^[5]

2016: Profit growth by 8% to $1.76 billion

In May 2016, Panasonic published a report on its work in fiscal year 2016. The profit of the Japanese electronics manufacturer increased by 8% due to business optimization.

According to the results of the 12-month reporting period, closed on March 31, 2016, Panasonic's consolidated revenue fell by 2% to 7.55 trillion yen ($68.8 billion). In this, the vendor blames the reduction in business volume in some departments (for example, in television) and the weak demand for solar panels and ICT solutions.

Annual revenue in Panasonic AVC Networks (mobile phones and digital cameras, various communications and electronic equipment) rose 1%, amounting to 1.17 trillion yen ($10.7 billion).

The volume of business in the field of household appliances decreased by 3% to 2.27 trillion yen ($20.7 billion).^[6]

Panasonic's net profit was 193.3 billion yen ($1.76 billion) against 179.5 billion yen ($1.64 billion) a year earlier. The company explained this rise by reducing fixed costs (including restructuring), optimizing the cost of materials used in production, as well as improving the business structure. In addition, sales of household appliances and telephones for vertical markets contributed to the increase in profits.

Panasonic AVC Networks profit rose 44% to 74.7 billion yen ($680 million). Profit in the household appliances division increased by 45% to 72.2 billion yen ($658 million).

Panasonic Results: 8% Profit Growth Due to Business Optimization

Panasonic described the 2016 fiscal year as a gradual recovery in the global economy. At the same time, a number of factors influenced the economic situation, including changes in the monetary policy of a number of countries, falling prices for natural resources and geopolitical instability. With slowing growth in China and some other resource-oriented economies, Europe and the United States have shown a gradual recovery based on stronger domestic demand. In Japan, while maintaining low purchasing activity, there was an improvement in the employment situation of the population, Panasonic said.

2015: Profit growth by 50% to $1.51 billion

At the end of April 2015, Panasonic announced the performance of its business for fiscal year 2015. The Japanese company was able to increase profit by 50%.

During the reporting 12-month period, closed March 31, 2015, Panasonic's net profit reached 179.5 billion yen ($1.51 billion) against 120.4 billion yen ($1 billion) a year earlier. This increase is mainly due to a reduction in income tax reserves as a result of a decrease in the value of deferred asset tax.

Operating profit during this time increased by 25%, to 381.91 billion yen ($3.21 billion), due to the development of the most promising areas, business restructuring, reduction of fixed costs and optimization of the structure of material costs. Due to this, the corporation managed to achieve the most important financial indicators of the CV2015 plan - operating profit and total net cash - one year ahead of schedule.

The vendor's sales for the year were practically unchanged and amounted to 7.72 trillion yen ($64.9 billion). The company projected net profit at 175 billion yen ($1.47 billion) with revenue of 7.75 trillion yen ($65.1 billion).

In Japan, after a surge in sales before the increase in consumer tax in April 2014, there was a slight decrease in demand for consumer electronics and home building solutions. At the same time, sales of household solar panels remained high. The high demand for products for the automotive industry has influenced the increase in sales in foreign markets. The yen depreciation also had a positive effect.

The fiscal year 2015 saw a gradual recovery in the global economy, although the pace of development of China, some ASEAN countries and Europe slowed. Employment statistics and consumer spending in the United States remained stable, signs of recovery were also noted in the Japanese economy.

Under these conditions, Panasonic continued to implement its medium-term development plan, called 'Cross value innovation 2015' (CV2015).

fiscal years 2012 and 2013 were unprofitable for Panasonic. The company decided to restructure, in which it abandoned the production of plasma televisions, medical equipment, reduced the telephone business, sold chip factories and laid off thousands of workers. In fiscal 2015, Panasonic spent 94.9 billion yen ($797 million) on transforming its operations. In 2016, expenses of 40 billion yen ($336 million) are planned for similar needs.

Panasonic's revenue growth in fiscal 2015 was also largely due to the successful work of two divisions - the production of equipment for vehicles (Automotive & Industrial Systems) and digital cameras and various business solutions (AVC Networks). The latter increased operating profit by 45% to 51.8 billion yen ($435 million). The automotive department showed a 53 percent increase in revenues, which amounted to 105.7 billion yen ($888 million).

Net cash from operating activities decreased by yen 90.5 billion compared to the previous year and amounted to yen 491.5 billion. 138.0 billion yen was allocated for investment projects. Thus, the volume of free cash amounted to 353.5 billion yen, largely due to fixing net profit, increasing working capital, transfer operations, as well as transferring investments to fixed assets. Net cash from the financial operations of Panasonic Corporation amounted to 257.6 billion yen through the issuance of unsecured bonds in the amount of 400.0 billion yen and the payment of dividends. Given the fluctuations in exchange rates, the volume of cash and cash equivalents in 2015 amounted to 1,280,4 billion yen, which is 687.9 billion yen more than in the 2014 fiscal year.

Total assets of Panasonic Corporation, as of March 2015, increased by 744.0 billion yen and reached 5,956,9 billion yen. Total liabilities increased by 337.8 billion yen and reached 3,964,4 billion yen due to the issue of bonds.

Panasonic plans to achieve revenue of 10 trillion yen ($84.1 billion) according to the results of the financial year, which will end in March 2019. On the way to the goal, the company intends to spare no money for acquisitions: in the period from 2015 to 2019, it is planned to spend 1 trillion yen ($8.4 billion) on the purchase of third-party assets that can strengthen Panasonic's business.^[7]

2012: Annual loss of $9.6 billion, including due to earthquakes and floods

Losses of the Japanese corporation Panasonic in fiscal year 2011-2012, which ended on March 31, 2012, reached 772.2 billion yen ($9.67 billion) compared to profit of 74 billion yen a year earlier. This is reported by the company report.

Panasonic sales during this period decreased by 9.7% and amounted to 7.85 trillion yen ($98.4 billion) compared to 8.69 trillion yen in the 2010-2011 financial year. Sales of the company decreased in all key regions, including the United States, Europe, Japan and China.

The manufacturer's results were affected by an earthquake in Japan, flooding in Thailand and a historically record yen rate.

According to the results of the 2011-2012 fiscal year, sales of Panasonic LCD TVs decreased by 28%, plasma - by 41% compared to the previous year.

2009: Loss of $4 billion

Revenue for the fiscal year ended March 31, 2009 - 7.77 trillion yen, operating profit - 72.9 billion yen, loss amounted to 378.96 billion yen ($4 billion) ^[8] May ^[9], 2009}}.

2007: 59th place in the world in terms of revenue in the world

In 2007, the company took 59th place in terms of revenue in the global ranking of Fortune Global 500^[10]

Notes